Being paid via paypal, can I use an umbrella company?

[deckster]

No UK agency will touch you as a sole trader and the risk are greater, if your a sole trader and you blow all your money and don't pay your tax they come after you personally, they can take your house and all your worldly goods as payment, if your LTD its the company thats responsible.

Not at all true for a contractor using a Ltd co. As a director, if you're deemed to be negligent (and paying yourself with Hector's money is pretty damn negligent) they will come after you personally.

[Support Monkey]

Your obviously planning on contracting as a career as you already have clients and your leaving your permanent job so the best option is to go LTD straight away.

No UK agency will touch you as a sole trader and the risk are greater, if your a sole trader and you blow all your money and don't pay your tax they come after you personally, they can take your house and all your worldly goods as payment, if your LTD its the company thats responsible.

If you don,t want the hassle of setup and looking for accountants just go for Nixon Williams or SJD or any of the other recommended companies that specialise in this kind of thing

[TykeMerc]

I haven't actually sent my CV to any UK based agencies but it is on my todo list... I'm guessing they won't touch me on your advice if I'm a sole trader?

Should I consider this for the future since the american contracts run out in 3-6 months.

Unless the situation has changed a lot in the last 10 years literally speaking there's nothing to stop you being a Sole Trader and having a Ltd at the same time, I used to do this. You can use the Ltd as an invoicing vehicle for Agency related work and the Sole Trader for directs.
You can salary and dividend as a Director too.

If this is the most sensible and tax efficient method is another debate.

The agencies aren't allowed to deal with you as a Sole Trader, that's the only real reason that contractors have a Ltd or use an Umbrella.

[JG Media]

WHS.

If you are going through an agency (and sometimes direct), they will insist that you need to be an employee somewhere - either of an umbrella or your own Ltd. This is because if you don't pay your income tax, the last link in the chain is potentially liable for the bill.

If your clients are happy for you to be self-employed, then that is great - just don't expect many UK-based clients to do the same.

I haven't actually sent my CV to any UK based agencies but it is on my todo list... I'm guessing they won't touch me on your advice if I'm a sole trader?

Should I consider this for the future since the american contracts run out in 3-6 months.

[The Wikir Man]

If you've got solid fee paying direct clients, go sole trader. You only need to use an umbrella (actually, nobody needs to use an umbrella ) or your own co if you work through agencies.

WHS.

If you are going through an agency (and sometimes direct), they will insist that you need to be an employee somewhere - either of an umbrella or your own Ltd. This is because if you don't pay your income tax, the last link in the chain is potentially liable for the bill.

If your clients are happy for you to be self-employed, then that is great - just don't expect many UK-based clients to do the same.

[malvolio]

If you've got solid fee paying direct clients, go sole trader. You only need to use an umbrella (actually, nobody needs to use an umbrella ) or your own co if you work through agencies.

[JG Media]

Hi There,

I've very recently started freelancing on the side and I've already got 2 good american clients which I found via oDesk.com. I've now cut out oDesk since it was charging me a 10% fee and I'm invoicing the clients direct in US dollars and they are paying me via Paypal every 2 weeks which I then convert to GBP in paypal (at a cost) and send to my bank.

I'm planning on registering as self employed next week since I'm working my notice at my current fulltime job.

I'm completely baffled by the options but have come to the conclusion for starting up, umbrella companies are more simple to deal with that setting up a LTD company. I thought I'd just be able to act as a sole trader via going self employed but I don't see anyone recommending this, why is this?

I'm wondering if I can still use an umbrella company even though I am paid to my personal paypal account? I suppose I could ask the client to pay me direct to the bank but then I would face a charge from the bank converting USD to GBP.

One more thing, I read that when I go self employed... I can earn upto £5.5k without paying tax or national insurance (personal allowance).. I plan to earn this in the first 4 weeks and put it away for a rainy day, is this ok with the tax man?


What would you suggest.

Thanks

J